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CalSTRS reduces targets for high-return real estate

by Zoe Wolff

The $191.4 billion California State Teachers’ Retirement System has reduced its target returns for value-added and opportunistic real estate investments by approximately 3 percent, according to recent meeting documents.

The Townsend Group, CalSTRS’ real estate consultant, is projecting an annual return of 7.5 percent for value-added properties and 10.0 percent for opportunistic, down from 9 percent to 12 percent and 13 percent, respectively.